If you're operating in Quebec and other provinces, don't lose track of employees moving between the two.
When you have a business operating in Québec and also in any other province, and you transfer an employee into or out of Quebec during a calendar year, there are special reporting requirements that need to be followed. Specifically you will need to issue 2 T4 slips.
One slip will show the province of employment as Québec, and will include the remuneration earned while in the province of Québec, the Québec Pension Plan (QPP) contributions deducted, the applicable pensionable earnings and any other applicable deductions.
The second slip will show the other province as the province of employment. It will include the Canada Pension Plan (CPP) contributions deducted, the applicable pensionable earnings, and any other applicable deductions.
When calculating the amount of CPP contributions, you can take into account the QPP contributions already deducted and vice versa. The total of the CPP and QPP contributions to both plans cannot be more than the provincial maximum contributions for the year. The provincial maximum to adhere to would depend on the province of employment at the end of the year. The CPP maximum for 2014 is $2,425.50. The QPP maximum for 2014 is $2,535.75.
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